Spanish energy group Iberdrola has approved a new strategic plan for 2008-2010. The plan proposes a growth model based on renewable energy, above all wind power, and on maximizing quality of supply.

The strategy for the coming years, confirming the path successfully followed for the past six years, envisages a new investment cycle totaling E24.2 billion with a continued focus on basic energy business both in Spain and abroad. Of this total, E17.8 billion is for organic growth and E6.4 billion to close the acquisition of Energy East.

With the friendly acquisition of ScottishPower completed in record time and that of US company Energy East initiated, Iberdrola is embarking on a period of consolidation of the international expansion undertaken a year ago within the the Atlantic area.

The company plans to invest more than E8.6 billion, 48% of the total assigned to organic growth, on continued expansion in renewables across the globe. More than E4.6 billion (54%) of this is slated to be in the US, in excess of E1.2 billion in Spain, another E1.2 billion in the UK, and E1.5 billion more in other countries.

Almost a third of the investment in organic growth (32%) over the next three years is projected to be in regulated businesses, in order to improve quality of service. Of the E5.8 billion, 36% is set to be in the UK (electricity transmission and distribution), 35% in Spain (electricity distribution), 24% in the US (electricity and gas distribution) and 5% in Latin America.